Bitcoin price has opened the week trading at $114,505 today, August 4. BTC did not leave much of a CME gap over the weekend to be filled, meaning there is room for the price to recover. Analysts believe that the price might reach resistance soon and possibly break out to $124,000 as odds for the Federal Reserve trimming interest rates in September surge.
Bitcoin Price Eyes Recovery as Odds of September Rate Cuts Soar
The odds of the Fed trimming rates next month are soaring. Data from the CME Fedwatch shows that 87% of investors are of the belief that a 25-basis-point cut will happen. If this does happen, the new interest rate will be between 4% to 4.25%.
The last time the Fed reduced rates was in December 2024. When the rates are reduced, the risk appetite among investors increases. The dollar drops, but investors usually take it as a green light that the economy is faring well.
Therefore, the Bitcoin price might record a good rally in September. The rally might start earlier in the days leading up to the meeting on September 17. This is because traders usually frontrun such events such that by the time they happen, it is already priced in.
Hence, even if BTC price is down right now, it might just be a temporary pullback. Analysts seem to share this belief, with speculations of how much further the king coin is going to surge.
BTC Recovery Looms as Analysts Eye $124,000
Top analyst Crypto Raven says that the BTC price might get to $124,000. He bases his forecast on volume profile. That is where the most trading activity happens, and it usually acts as a magnet to which the price will drop or rise.
Raven opines that in the near term, the Bitcoin price will drop to between $110,000 and $112,000. Afterwards, it will begin to rise. He places resistance at $118,000 that will then act as a stepstool towards $124,000.
This analyst is not alone in his bullish forecast. Daan Crypto says the ongoing drop might be the usual drop that happens when the month starts. In a recent X post, he notes,
“There’s also a very high likelihood we make a larger move this month… Most of the months in a bigger up trend see a flush early on and then proceed to move up higher.”
These analysts are sharing short-term forecasts. A longer Bitcoin price forecast for 2025 suggests that even more gains might happen before the year ends.
In short, the next six weeks could be quite eventful for Bitcoin. If the Fed follows through with the rate cut that many are betting on, it would not be a stretch to see Bitcoin push toward the $124,000 mark.
Frequently Asked Questions (FAQs)
Bitcoin price will likely surge if the Fed trims interest rates because this could increase the risk appetite among investors.
BTC price could reach $124,000 if the price breaks above the resistance level of $118,000.
The most crucial resistance level for BTC price is $118,000, which could act as a stepping stone to its future gains.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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